AGC: Construction Employment Shows Slight Decrease In December
Arlington, VA – Construction employment declined by 11,000 positions in December, with modest decreases in both residential and nonresidential sectors, according to an analysis by the Associated General Contractors of America of newly released government data. Association officials noted that the new employment figures reflect the same contractor concerns identified in the group’s newly-released 2026 Construction Hiring & Business Outlook.
“Nonresidential construction employment expanded modestly in 2025 but was held back by unwillingness of many owners to commit to projects in the light of ongoing policy turmoil,” said Ken Simonson, the association’s chief economist.
“Based on our recent survey, it appears 2026 will also present only limited opportunities for growth.”
Construction employment in December totaled 8,303,000, seasonally adjusted, a decrease of 11,000 from November. Headcount rose by 14,000 jobs or 0.2 percent during the past 12 months, just under the 0.4 percent growth rate in total nonfarm payroll employment.
November figures were also revised downward, indicating the labor market was weaker heading into December than earlier estimates suggested.
Nonresidential
construction firms shed 7,800 jobs in December, accounting for most of
the sector’s monthly losses. Within that category, nonresidential
specialty trade contractors lost 8,900 jobs and nonresidential building
contractors lost 1,200 jobs. The only segment to add workers was heavy
and civil engineering construction, which gained 2,300 jobs for the
month. Residential construction employment also weakened, declining by
3,100 jobs. The drop was driven by a 4,200-job decrease in residential
building, partially offset by a 1,100-job increase among residential
specialty trade contractors.
Average
hourly earnings for production and nonsupervisory employees in
construction—including most onsite craft workers and many office
staff—increased 4.5 percent over the year to $38.08. That gain exceeded
the 3.6 percent rise in pay for such workers in the overall private
sector. The unemployment rate among workers with recent construction
experience jumped up to 5.0 percent in December and is now above the
overall nonfarm rate of 4.1 percent (not seasonally adjusted).
Association
officials noted that construction firms have “dampened” expectations
for most market segments in 2026, except for the construction of data
centers, power projects and water & sewer facilities, according to
the Construction Hiring & Business Outlook
the association and Sage released yesterday. That same report did find,
however, that most construction firms plan to expand their headcount
this year, if they can find enough qualified workers to hire amid
persistent labor shortages.
“Even
though they are less enthusiastic about demand for most types of
construction work this year, most firms expect to have enough work to
expand their headcount,” said Jeffrey D. Shoaf, the association’s chief
executive officer. “This assumes they will be able to find enough
qualified workers to hire amid chronic federal underinvestment in
construction workforce development.”
View the construction employment data.
About The Associated General Contractors Of America
The Associated General Contractors of America (AGC) is a leading association for the construction industry. AGC represents more than 26,000 firms, including over 6,500 of America’s leading general contractors, and over 9,000 specialty-contracting firms. More than 10,500 service providers and suppliers are also associated with AGC, all through a nationwide network of chapters. To learn more, visit www.agc.org.